Article View: capdist.misc
Article #611New York State and The Tobacco Industry
From: David W. Truland
Date: Sat, 21 Dec 1996 00:00
Date: Sat, 21 Dec 1996 00:00
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In 1994 the State of Mississippi, a well known left-wing vacation spot, filed suit against the tobacco industry to recoup that state's share of Medicaid funds spent on smoking related illnesses. Since then, 18 other States have taken similar action. Just last week, a judge in Florida allowed the State of Florida to add a claim under the state's Racketeer Influenced and Corrupt Organizations (RICO) law to it's $2.4 Billion lawsuit for the repayment of public funds spent on tobacco illnesses. If Florida proves its case under the RICO statute, damages would triple. Florida's Governor Lawton Chiles stated that "For decades, the tobacco cartel has conspired - like a crime family - to hook our people on its deadly product and hide the evidence." In approving the claim the Judge wrote: "No cocaine cartel, gambling empire or white-collar scheme has even approached the damage allegedly done to the state as alleged in the plaintiff's case." The Albany Times Union reports that Florida's suit claims industry officials lied to the federal government, committed fraud, illegally marketed its products to children and conspired to deceive the public about the dangers of smoking. The States of Arizona and Texas are also reportedly attempting to add a RICO claim to their suits against the tobacco industry. One wonders why New York State, with its supposedly cost conscious Republican governor hasn't joined in this attempt to recover taxpayers dollars. Although estimates vary, it is generally reported that tobacco related illnesses cost New York taxpayers more that $1 billion a year. For a year now, Republican Attorney General Dennis Vacco has been "studying the possibility" and "consulting" with others in the Pataki administration. In November, a coalition of groups including the New York State Nurses Association, the American Cancer Society, the American Heart Association, the American Lung Association, the League of Women Voters of New York and the New York Public Interest Research Group urged Attorney General Vacco to sue to recoup this loss. In a March, 1996 editorial, The Troy Record stated that "Smoking related illnesses are killing our residents and costing taxpayers millions of dollars in added health care costs. It's about time New York joined other states in forcing tobacco companies to pay up." In September, Erie County, tired of waiting for Vacco to act, filed its own lawsuit against the tobacco companies. New York City has also chosen to act independently of the State. In fact, the only New York State official who seems serious about issues related to cigarette smoking is Comptroller H. Carl McCall. In September, McCall said that, as sole trustee of the state retirement fund, he would be keeping an eye on the fund's holdings in the tobacco industry. This week, McCall announced that he would throw the weight of the retirement fund behind efforts to force tobacco companies to stop marketing their products to teenagers. McCall has proposed shareholder resolutions which would force company executives to voluntarily comply with recently proposed US Food and Drug Administration regulations aimed at curbing teenage smoking. Up until now, the industry has vigorously opposed these regulations which would prohibit cigarette ads on billboards within 1,000 feet of schools, restrict the types tobacco ads in magazines aimed at younger readers, prohibit certain in-store cigarette advertising and prohibit vending machines in places where teenagers have access to them. The Interfaith Center on Corporate Responsibility has called McCall's plan "a tremendous act of leadership by the state." Executive director Timothy Smith went on to say that the plan "will send a very strong message to the tobacco industry." On Sunday December 15, Governor Pataki issued a news release outlining a modest advertising program aimed at smoking by adolescents and pregnant women. Pataki proposed spending $13 million over the next two years in the campaign. The proposal also raises to $200 the fee retailers pay to sell cigarettes with half of those funds going to local governments to enforce laws prohibiting sales to those under 18. But why is the Governor spending MORE of our tax dollars instead of trying to get some of those dollars BACK? Could campaign contributions have anything to do with it? Patrick Reynolds, whose family founded the R.J. Reynolds Tobacco Company (now part of RJR Nabisco), is now an anti-smoking activist and claims that the industry contributed $15 million to Republican campaigns in 1996. The NY Times reported earlier this year that since the beginning of 1995 tobacco interests had contributed $2.1 million to the Republican National Committee and only $78,200 to the DNC. Pataki's ad campaign, which features his wife Libby,(can an ad featuring Al D'Amato be far behind) had been hailed by the press as "a sharp break with his administration's attitude toward the tobacco industry [Tom Precious - Albany TU]" and as "a welcome departure from an attitude toward the tobacco industry that had concerned many in New York. [TU editorial]." Come on folks. In the first place, New York risks losing federal funding if spot checks at cigarette retailers don't result in at least 80 percent refusing to sell to minors. In the second place, I've never seen any figures regarding advertising and promotional spending by cigarette manufacturers in New York but I can guarantee that $13 million pales by comparison. Can't you see those cigarette company executives huddling around their conference tables saying "Damn it, why didn't Pataki just sue us for $10 billion. This ad campaign is going to put us out of business. All of our billboards, sports advertising, in store displays - all wasted because of these damn ads with that broad, Libby. She really connects with those rebellious teens we target." This ad campaign was the least the governor could do. And when it comes to offending the tobacco industry, New York Republicans always do the least they can do. ---------------------------------------- www.albany.net/~truland/
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X-Google-Language: ENGLISH,ASCII-7-bit X-Google-Thread: 110b47,db3e8509983124e7,start X-Google-Attributes: gid110b47,public From: truland@albany.net (David W. Truland) Subject: New York State and The Tobacco Industry Date: 1996/12/21 Message-ID: <32c461a0.32017646@news.albany.net> X-Deja-AN: 205331604 content-type: text/plain; charset=us-ascii organization: IUTAPCP mime-version: 1.0 reply-to: truland@albany.net newsgroups: capdist.misc